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2016/2017  KAN-CCMVV2008U  Innovation and Strategy in the Digital Economy

English Title
Innovation and Strategy in the Digital Economy

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course Autumn, Second Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Lars Bo Jeppesen - Department of Innovation and Organizational Economics (INO)
Kontaktinformation: https:/​/​e-campus.dk/​studium/​kontakt eller Contact information: https:/​/​e-campus.dk/​studium/​kontakt
Main academic disciplines
  • Innovation
  • Organization
  • Strategy
Last updated on 01-12-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: After successfully completing the course, the student should be able to:
  • Understand the current debates around innovation in the digital economy, strategy, as it relates to digital economy and data.
  • Explain how digital changes and the availability of data transform the business landscape.
  • Discuss relevant theories and explain their assumptions, causal dynamics and processes.
  • Assess the role of data in business innovation and specify success and failure factors.
  • Understand central concepts around management in the context of digital businesses.
  • Discuss ethical issues of the digital economy and organizations’ use of data.
Course prerequisites
Master level students – all lines allowed, also external students from Danish and International Universities.
Innovation and Strategy in the Digital Economy:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Report
Duration 48 hours to prepare
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
* if the student fails the ordinary exam the course coordinator chooses whether the student will have to hand in a revised product for the re- take or a new project.
Course content and structure

This course will give students an introduction to central issues of innovation and strategy in the digital economy. It forms the background for the study of data in the business context. The growth of the digital economy is predicting a data rich future and a transformation of the business landscape with implications for existing firm, entrepreneurial ventures, and individual workers. In some of the most dynamic sectors of the modern economy, such as, apps for smartphones, video games, media content, scientific and technical problems solving, companies’ overall performance already rely on data, setting requiring a whole new set of skills and organizational capabilities. The course will develop the conceptual foundations, frameworks and methods for analyzing the relationships between communities, crowds, and firms. It introduces student to the process of digital transformation. The course gives students a systematic basis for assessing the economic potential of different sorts of data and organizational imperatives to unlocking that potential. The first part of the course introduces business models of the digital economy. The latter part will focus on organizing in a data rich business context. Topics will include:


  • Digital economy and innovation
  • Digital business models and strategy
  • The role of crowds in generating innovation and predictions.
  • Crowdsourcing, crowd funding, collaborative innovation
  • Digital platforms
  • Managing organizations in a data rich future
  • Data networks and markets
  • Assessment of data potential
Teaching methods
The course will employ a variety of teaching forms, including lectures, interactive case based sessions, hands-on exercises, and guest lectures by practitioners.
Student workload
Teaching 33 hours
Preparation 93 hours
Exam 80 hours
Further Information

This course is part of the minor Data in business

Expected literature

Boudreau K, Lakhani K. 2013. Using the crowd as an innovation partner. Harvard Business Review 91(4): 60-69, 140.

Burtch et al 2013: An Empirical examination of the antecedents and consequences of contribution patterns in Crowd-funded markets, Information Systems Research 24, 3: 499-519

Chen, H., Chiang RHL. VC. Storey, 2012, Business Intelligence And Analytics: From Big Data To Big Impact, MIS Quarterly 36 (4), pp. 1165-1188

Edelman, B., 2012, Using Internet Data for Economic Research, Journal of Economic Perspectives 26 (2) pp. 189–206

Fosfuri-Giarratana-Roca, Community-focused Strategies, Strategic Organization, 9(3): 222-239. 2011.

Greenstein, S., Lerner J., S Stern, 2013 Digitization, innovation, and copyright: What is the agenda? Strategic Organization, (11) 110. 110-121

Jeppesen, LB & Frederiksen, L 2006, 'Why Do Users Contribute to Firm-Hosted User Communities?: The Case of Computer-Controlled Music Instruments' Organization Science, 17 (1), pp. 45-63.

Muñiz Jr, A.M., O’Guinn, T.C., 2001. Brand Community. Journal of Consumer Research 27 (4), 412-432.

Varian, H. R., Computer Mediated Transactions, March 6, 2010; http://people.ischool.berkeley.edu/~hal/Papers/2010/cmt.pdf

Varian, Hal, Beyond Big Data. http://people.ischool.berkeley.edu/~hal/Papers/2013/BeyondBigDataPaperFINAL.pdf

von Hippel, 2005 Democratizing Innovation, MIT Press

Yoo Y, Boland R, Lyytinen K, Majchrzak A. 2012. Organizing for innovation in a digital world. Organization Science 23(5):1398–1408.



Austin, Lakhani, Yi, Data.gov: Matching Government Data with Rapid Innovation, Harvard Business School Case 2010.

Lakhani, Karim R., and Zahra Kanji. Threadless: The Business of Community: Harvard Business School Video Case 608-707, June 2008

Lakhani, Karim R., From Community to platform, Harvard Business School Electronic Case, Spring 2014

Lakhani, Karim, D.A. Garvin, E Lonstein, TopCoder (A): Developing Software through Crowdsourcing, Harvard Business School Case 2010.


Last updated on 01-12-2016